Insurance Market in Algeria
Two main indicators are used to assess insurance markets, namely Insurance density and Insurance penetration rate
The penetration rate is defined as a country’s total insurance premiums as a percentage of its gross. domestic product (GDP) and indicates how much the insurance sector. contributes to the national economy.
Penetration rate and Insurance density in Algeria are still very low, Algeria is lagging behind other african nations such as South Africa, Morroco and Tunisia.
Africa itself has the lowest total penetration rate in the World of 2.7%, with a non–life penetration rate of less than 1% (figures from Deloitte report on Growing insurance & challenges with a focus on Africa)
Innovative insurtech in Africa
Insurtech could be an usefool solution to boost the insurance industry in Algeria.
Insurtech in Africa is mainly focusing on making Insurance accessible.
WeeTracker using data from Africo, identified 40+ InsurTech startups in Africa that have raised equity funding rounds and are making insurance accessible to the low-middle income populations as well as businesses.
Unfortunately there is no insurtech from Algeria within the tracker.
Leveraging digital
Deloitte in a recent report ( Unlocking new markets Digital innovation in Africa’s insurance industry) provided an overview of how Insurance companies could Achieve customer centricity through innovation.
Insurance companies have to start thinking about a business model that is customer-centric and focuses on affordability, access, reach and trust.
Data analytics
Insurance is a data-reliant industry. New innovative tools are in place to help insurance companies to predict behaviours but also to inform customers on their casualty exposures or to offer strategic solutions that help customers confront unpredictable perils